Three major regulatory trends in 2021, December 20-27

This is the time of the year: a single event must be abandoned to support the end of the year, the overall narrative, and the lessons of the year. As many governments around the world finally had to face the rapidly becoming mainstream digital finance sector, this year was flooded with developments in cryptocurrency policy and regulation. These developments cannot be summed up in a succinct summary. However, it is possible to try and extract several major trends that have emerged in the past 12 months. As we enter 2022, these trends will continue to shape the relationship between society, state power, and the encrypted space.

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U.S. Congress informs encryption

In 2021, U.S. cryptocurrency regulation will no longer be primarily responsible for unelected officials sitting in various financial regulatory commissions and the Treasury Department. Federal lawmakers have held more high-profile congressional hearings on digital assets than in any previous year.Their mastery of encryption-related issues is also Significant improvementThe administration is still trying to guide important decisions-this approach is most vividly reflected in the inclusion of crypto broker reporting requirements at the last minute Infrastructure Act ——However, supporters of this kind of course are likely to be caught off guard by a consistent counterattack From the industry and its allies On Capitol Hill.Admittedly, not everyone in Congress is a Bitcoin enthusiast, but there are still many people, some people are making cryptocurrency their focus Legislative agenda.

The emergence of cryptocurrency as a significant issue of public policy Partisan polarization A question was also raised about the positions of the two major political parties in the United States on issues related to digital assets. The coming year may see further crystallization of the partisan encryption stance.

Authoritarians tend to be hardliners

Another emerging rift can be observed in how various political systems handle cryptocurrencies according to their position on the free-authoritarian continuum. Obviously, all power agents are trying to maximize their control over the payment system and the broader financial system, but in 2021, those who make more use of the free market look more likely to join rather than strictly Limit the space of digital assets.

China’s practice and its ban on cryptocurrency trading and mining marks the end of the policy palette. Another option is to open up to financial innovation at the cost of limited control and reap the benefits of this openness.

The struggle between these two positions has intensified in several large economies, and it is reasonable to expect these economies to choose a tougher scenario.Although the imminent threat seems to have Avoid in India, The uncertain signal comes from Russia and Turkey It shows that the forces supporting hawkish methods are extremely influential there.

Unprecedented legal risk

From El Salvador to become the first cryptocurrency country with Bitcoin legal tender status (Bitcoin) Until the US Securities and Exchange Commission finally allowed Bitcoin exchange-traded funds to enter the market, more people than ever before can legally use cryptocurrency for payment and investment.

Nonetheless, the narrative shifts driven by these historical advances go far beyond the scope of the cryptocurrency bubble, triggering a new wave of mainstream interest. With the increase in awareness and exposure, it has become increasingly difficult for policymakers to ignore the new economic and social realities of Bitcoin and its siblings in the lives of millions of people. At this point, the virtuous circle of global adoption of cryptocurrency has not stopped. By 2022, there will be less power to turn a blind eye to crypto-driven social changes.